Credit Agricole Said to Weigh Job Cuts in Investment-Banking Arm

Credit Agricole ’s board meets today and the board of the corporate- and investment-banking division will gather tomorrow morning to discuss the unit’s reorganization, said the person, who asked not to be identified because the matter is confidential. Photographer: Chris Ratcliffe/Bloomberg

Dec. 14 (Bloomberg) -- Credit Agricole SA, France’s third-largest bank, is considering job cuts at its corporate- and
investment-banking unit, according to a person with knowledge of
the matter.

The lender may eliminate about 2,000 jobs, including 1,500
at the division, Le Figaro reported, citing a person with
knowledge of the matter. The bank’s board was set to meet
yesterday, and the board of the corporate- and investment-banking arm will gather today to discuss the unit’s
reorganization, a person told Bloomberg News previously, asking
not to be identified because the plan is confidential. An
announcement may come today. The reductions will occur in France
and abroad, the person said, without providing more details.

Anne-Sophie Gentil, a Credit Agricole spokeswoman, declined
to comment on job cuts. There was no response to later calls
after office hours seeking comment on figures reported by Le
Figaro.

The lender, based near Paris, would join BNP Paribas SA and
Societe Generale SA in reducing corporate- and investment-banking staff. Credit Agricole is cutting fewer assets than its
two larger French rivals after a dearth of U.S. short-term
dollar funding hit European banks over the summer.

Credit Agricole said on Sept. 28 it plans to reduce
financing needs by as much as 52 billion euros, including
between 15 billion euros and 18 billion euros at its corporate-and investment-banking unit.

“Many banks in France and elsewhere are now engaged in
deleveraging efforts,” Moody’s said Dec. 9. “There is a risk
that, where asset sales are required, a lack of market appetite
could lead to a shortfall against the targeted reduction, or it
may be possible only at depressed prices.”